Motivation –Theory and Practice Business Studies Motivation –Theory and Practice Learning Objectives: Discuss homework To review ways of improving job satisfaction and the level of employee motivation at work To understand and be able to apply to given business situations the motivational theories of writers such as: Taylor (Scientific Management - 1911) Maslow (Hierarchy of Needs - 1954) McGregor (Theory X and Theory Y - 1960)

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice Performance related pay Commission Bonus METHODS OF PAYMENT Wages Time rate Piece rate Salaries Profit-sharing

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice JOB SATISFACTION can be increased by… Job Rotation Workers swap specific tasks for a limited time to increase the variety of the work they do and their skill level Job Enrichment Tasks are added that require more skill and/or responsibility. This may include additional training and challenge in the workplace Job Enlargement Extra tasks of a similar level are added to a worker’s job description to increase the variety of work being done

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice MOTIVATION IS………. The reason why employees want to work hard and work effectively for the business Is there more to motivating an employee than just ……. money

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice Chance to be creative Fringe benefits holidays Recognition and prestige A reasonable level of pay A clean and safe work environment Chance to take responsibility Motivating factors that influence job satisfaction and work productivity Job security Chance for promotion Tasks that provide a sense of achievement (challenge) Working with friendly colleagues Interesting and stimulating tasks Independence at work

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice A well-motivated workforce can provide the following advantages: Better productivity (amount produced per employee). This can lead to lower unit costs of production and so enable a firm to sell its product at a lower price Lower levels of absenteeism as the employees are content with their working lives Lower levels of staff turnover (the number of employees leaving the business). This can lead to lower training and recruitment costs Improved industrial relations with trade unions Contented workers give the firm a good reputation as an employer so making it easier to recruit the best workers Motivated employees are likely to improve product quality or the customer service associated with a product

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice TAYLOR (1911) - Scientific Management Scientific management is a philosophy and set of methods that stressed the scientific study and organization of work at operational level for improving efficiency. It is associated with Frederick Winslow Taylor who is called the “father of Scientific Management.” Scientific Management has contributed the following techniques that are used even today: Scientific method of doing work. Planning tasks. Standardization. Specialization and division of labour. This approach has been criticised that David McClelland dehumanized workers by treating them as mere factors of production. David believed that workers could be motivated by mere need for money i.e. economic gains by the form of higher wages. In reality, workers need a sense of job security, social fulfillment and a challenging job, other than a good pay.

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice Maslow - 1956 Self-actualisation Self-esteem Love and Belonging MASLOW’S HEIRARCHY Safety Needs Physiological Needs

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice McGregor - 1960 Theory Y People are responsible, committed and enjoy having control over their work Theory X For people to work effectively and efficiently they must be strictly controlled

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice For each theory: What is the central idea behind the theory? Describe the theory briefly in your own words Do you think that the theory works? What are some limitations or criticisms of the theory?

Motivation –Theory and Practice Business Studies Motivation –Theory and Practice Achievement Promotion Recognition Responsibility Motivators – Factors which motivate workers What is Herzberg’s theory? WORK Pay Conditions Company policy Treatment/relationship with management Hygiene factors – factors that prevent dissatisfaction